GBPUSD 24th April, 2017

We are updating both counts according to the latest price action and main hourly count continues to expect Cable to unfold upwards to complete a five wave structure while the alternate count expects Cable to continue unfolding downwards to complete a second wave correction.

We will wait for either counts confirmation point to be reached to determine the highly probable count.

Synopsis By movement above 1.2908 Cable would be expected to find resistance at 1.2950 and if exceeded then to 1.3007. If Cable unfolded below 1.2766 Cable would be expected to find support at 1.2753 and if exceeded then to 1.2722 and finally 1.2702.

At 1.2918 wave (4) black would reach 0.236 of wave (3) black and at 1.3009 wave C blue would reach 0.786 of wave A blue and finally at 1.3182 wave C blue would reach equality with wave A blue.

This count would be invalidated by movement below 1.1970 as wave B blue may not retrace more than 100 % of wave A blue and it is worth noting that invalidation point would be moved to the end of wave B blue once we have confirmation that wave C blue is underway. As well this count would be invalidated by movement above 1.4567 as wave (4) black may not enter the price territory of wave (1) black.

Main Hourly Wave Count

N.B.: This count is presented on 2-hours chart for clarification purposes.

This count expects that wave (4) black is underway with waves A and B blue complete and wave C blue is underway.

As far as MACD study goes, MACD is showing a bullish divergence as MACD registered a new low while price action failed to reflect that new low and in the process creating a bullish divergence.

This count would be confirmed by movement above 1.2908.

At 1.2950 wave v pink would reach 0.786 of wave i pink and at 1.3007 wave v pink would reach equality with wave i pink.

This count would be invalidated by movement above 1.4567 as wave (4) black may not enter the price territory of wave (1) black. As well this count would be invalidated by movement below 1.2609 as wave iv pink may not enter the price territory of wave i pink. It should be noted that invalidation point will be moved to the end of wave iv pink once we have confirmation on the hourly chart that wave v pink is unfolding upwards.

Alternate Hourly Wave Count

N.B.: This count is presented on 2 hours chart for clarification purposes.

The only difference between both main and alternate hourly counts is within the subdivision of wave C blue.

This count expects that wave C blue is unfolding upwards as an ending diagonal labeled waves i through v pink with wave i pink complete and wave ii pink is unfolding downwards.

Wave i pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (a) green unfolding as a leading diagonal labeled waves i through v orange.

Wave ii pink is unfolding as a double zigzag labeled waves (w), (x) and (y) green with wave (w) green complete and it is likely that wave (x) green is complete as well.

This count would be confirmed by movement below 1.2766.

At 1.2753 wave (y) green would reach 0.786 of wave (w) green and at 1.2722 wave (y) green would reach equality with wave (w) green and at 1.2702 wave ii pink would reach 0.382 of wave i pink.

This count would be invalidated by movement below 1.2365 as wave ii pink may not retrace more than 100 % of wave i pink. As well this count would be invalidated by movement above 1.2908 as wave (x) green within wave ii pink may not retrace more than 100 % of wave (w) green it should be noted that the invalidation point would be moved to the end of wave (x) green once we have confirmation on the hourly chart that wave (y) green is underway.

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